US hot-dipped galvanized (HDG) coil prices continue to rise along with the price of hot rolled and cold rolled coils, increasing by approximately $40 /nt ($44 /mt or $2.00 cwt.) so far for April shipments over March.
Most domestic offers for 0.019" by 48" G90 items now range from $53.50 cwt. to $54.50 cwt. ($1,179 /mt to $1,202 mt or $1,070 /nt to $1,090 /nt) FOB Midwest mills. On the West Coast, the pricing level is approximately $2.00 cwt. ($22 /mt or $20 /nt) higher than the Midwest level.
Though some mills have not yet made a price announcement to their customers for April orders, the average price increase is approximately $40 /nt ($44 /mt or $2.00 cwt.) when compared to March orders. AK Steel went up $30 /nt ($33 /mt or $1.50 cwt.) for April, which is on the lower end of the increases, and Nucor is expected to go up by $40 /nt ($44 /mt or $2.00 cwt.); however, there are some domestic mills that have quoted prices in the $56.00 cwt. to $57.00 cwt. ($1,235 /mt to $1,257 /mt or $1,120 /nt to $1,140 /nt) range, i.e., an increase of approximately $80 /nt ($88 /mt or $4.00 cwt.). The range varies slightly from mill to mill, but the big buyers are likely to get slightly better deals.
There is still no apparent improvement in end-user demand for galvanized sheet, most of which goes into the construction and automotive markets. However, stockists and re-rollers are buying in order to hedge against more price increases, as well as to replenish their inventories, which are still at low levels due to the lack of imports.
Mills have justified these hefty increases citing higher raw materials costs; however, in February scrap prices have softened slightly, taking the edge off the argument. Busheling scrap prices have only slid by $10 /long ton, which could be considered a minor correction, as the scrap market went up at such high speeds in January. Despite the softening of scrap prices, the domestic pricing trend for coated products remains up.
On the import side, most foreign mills are still refraining from offering galvanized material to the US due to the rapidly rising hot rolled coil prices both in the US and abroad, particularly in Asia. For this reason, the pricing trend for import galvanized offers remains strongly up.
Hot-dipped galvanized offers from China are expected to be back in the market after the Chinese New Year celebrations. These new offers are expected to be at higher levels than the last round of offers.
For the most commonly imported galvanized item (0.012" by 40.875" G30), India is back in the market with offers to the US ranging from $55.00 cwt. to $56.00 cwt. ($1,213 /mt to $1,235 /mt or $1,100 /nt to $1,120 /nt) FOB loaded truck on the Gulf Coast.